AKC News // CIF wants 10% pay cut for builders

The Construction Industry Federation has asked the Labour Court to sanction a 10% pay cut and an extended pay freeze for 190,000 construction workers.

The construction employers say the industry has lost 100,000 jobs since early 2007, and that 55,000 more jobs could be lost within the next five months if labour costs are not reviewed.

For their part, construction unions asked the Labour Court to sanction full payment of the 3.5% increase now due under the national wage agreement.

Wage rates in the construction sector are set by a legal mechanism called a Registered Employment Agreement.

However, the Construction Industry Federation told the Labour Court that employers can no longer afford REA pay levels.

With activity in both residential and infrastructural projects dramatically down, the sector has already shed almost 100,000 jobs - and says a further 55,000 construction workers could lose their jobs within five months if wages are not cut by 10%.